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1. Having due regard for interim developments, the Joint Chiefs of Staff adhere to their view regarding negotiations on Indochina, as expressed in their memorandum to the Secretary of Defense dated 12 March 1954. The Secretary of Defense forwarded that memorandum to the Department of State with his full concurrence on 23 March. Understand Defense Member of US DEL holds a copy.

2. Outline of French armistice proposal furnished in SECTO 106 has been examined by JCS in light of their views referred to above. They consider that French proposal would be regarded by Asian peoples as a Communist victory, particularly in the light of the current military situation in Indochina. An armistice under the proposed conditions would, in their opinion, lead to a political stalemate attended by a progressive deterioration of the Franco-Vietnamese military position ultimately resulting in the loss of Indochina to the Communists.

3. Even were the Communists to agree to undertake armistice negotiations pursuant to the French proposal, such negotiations would be expected to result either in a rapid capitulation of the French to obtain an early cease-fire or in a protracted Rh